Manage Your Account

*Note: Depending on your user access level, and if you have an advisor who can access your account, some of the functions described here may not be available to you, or may be performed by your advisor.

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What is an Order Routing Report?

An order routing report displays the market center to which we sent all or a portion of your order for execution. A market center can be a market maker, which is a company that is engaged in the business of buying and selling securities from its inventory, or an exchange, such as the New York Stock Exchange. The market center we list is the initial market center to which we routed all or a portion of your order. It may not be, however, the actual center that executed the order. For example, we may send an order to a market maker who then sends it to an exchange to be executed.

An order routing report does not list execution information, such as the price or time of your execution.

The following information will be displayed for each security:

Date and time an order was routed to a market center

Name and symbol of each security

Share amount

Initial market center that received the order

What is the Message Center?

The Message Center is a secure location where we deliver account alerts, required notifications, product information, and other important data related to your account.

By default we will send all non-confidential and confidential messages to both your Message Center and your primary email address. You can update the default settings by selecting Notification Settings in the Message Center.

How can I change my Message Center settings?

The default setting is to send all non-confidential messages to both your Message Center and your primary email address.

Confidential Messages: We may need to deliver a message to your Message Center that contains sensitive account or personal information. To maintain your privacy and ensure your account security, we will not forward these Confidential Messages to your personal email. We will send a notification message to your primary email address to inform you of the Confidential Message sent to your Message Center, unless you deselect the corresponding box in your Notification Settings.

Product Messages: Product messages may include information about products, services and special offers available from us and from selected other companies. You can opt out of receiving Product Messages in your message center and your personal email, from us and from other companies.

Security Messages: We are required to send certain types of critical, account-related alerts and confidential notifications to your email address on file. We cannot give you the ability to opt out of receiving these messages.

What is a Trade Threshold?

In some instances, small “minimal” orders occur when you sync your model. These are orders that are generally too small to have a meaningful impact on overall account performance, but which can have unintended adverse consequences such as:

We have two trade thresholds to eliminate nuisance orders: a Percentage Trade Threshold and a Dollar Trade Threshold.

Model managers tailor the percentage trade threshold for each model, while firms set a universal dollar trade threshold for all their managed accounts.

Orders from model syncs must pass both of the percentage and ollar trade thresholds to generate. Orders that do not meet the percentage trade threshold or the dollar trade threshold will not generate.

Percentage Trade Threshold: is the minimum percentage by which the current weight of a securiy must deviate from its target weight before an order will be placed for that security. Orders for client holdings with deviations less than the allowable threshold will not be generated.

The model manager sets the Percentage Trade Threshold.

The Percentage Trade Threshold applies to model syncs only.

Dollar Trade Threshold: is the minimum dollar amount that a trade must meet before an order will be placed to make that trade. Orders for individual securities of a dollar amount less than the dollar trade threshold will not be generated.

The Dollar Trade Threshold is set at the firm level. To set or alter your firm’s dollar trade threshold, please contact a Folio Advisor Team Member.

The Dollar Trade Threshold applies to both model syncs and allocation rebalances.

Example - A Subscribed Folio with Percentage and Dollar Trade Thresholds: for orders to be generated, they must pass both the Percentage Trade Threshold and the Dollar Trade Threshold.

Target Weight

Current Weight

Deviation

Percentage Trade Threshold

Order Amount

Dollar Trade Threshold

Security A

10%

9.8%

0.2%

0.5%

$2

$5

Security B

5%

5.6%

0.6%

0.5%

$3

$5

Security C

20%

19.6%

0.4%

0.5%

$8

$5

Security D

10%

10.8%

0.8%

0.5%

$8

$5

In this example,

The order amount for Security A does not meet either threshold, so a buy order will not be placed.

The order amount for Security B meets the percentage trade threshold, but does not meet the dollar trade threshold, so a sell order will not be placed.

The order amount for Security C meets the dollar trade threshold, but does not meet the percentage trade threshold, so a buy order will not be placed.

Finally, the order amount for Security D meets both thresholds, so a sell order will be placed.

What happens when Thresholds are ignored?

There are two instances where a minimal trade is placed regardless of its adherence to these thresholds. This occurs in the following situations:

Your order was a “sell all” order: you place a sell all order to clear a position out of a Folio. Therefore, we do not block such trades and these orders are always placed regardless of whether or not they meet threshold criteria.

Your order had an excess of sell orders below the threshold: this may occur due to the process by which minimal trades are discarded. We drop all minimal buy orders first and then drop all minimal sell orders, from smallest to largest, until all dropped buy orders are offset by the dropped sell orders. Any sell orders that remain after the buy orders are discarded are placed as normal orders. Any buy order amounts that remain after all minimal sell orders are discarded are invested in cash.

Example - an Exception to a Threshold

Order Side

Order Amount

Dollar Trade Threshold

Discarded?

Security A

Buy

$2

$5

Yes

Security B

Buy

$10

$5

No

Security C

Buy

$3

$5

Yes

Security D

Sell

$2

$5

Yes

Security E

Sell

$3

$5

Yes

Security F

Sell

$4

$5

No

Security G

Sell

$6

$5

No

In this example,

The order amounts for Security A and Security C do not meet the dollar trade threshold, so a buy order was not generated.

The order amount for Security B does meet the dollar trade threshold, so a buy order was generated.

The order amounts for Security D and Security E do not meet the dollar trade threshold, so a sell order was not generated.

The order amount for Security F does not meet the dollar trade threshold, but a sell order is still generated.

The Security F order is generated because we generate the minimal buy orders first (in this case, Security A and Security C), and use the total of discarded minimal buy order amounts (in this case $5) to generate minimal sell orders, from smallest to largest, until this amount is offset by minimal sell orders that have been already discarded.

In the example above, we would discard the sell order for Security D first, then the sell order for Security E. At this point the total of discarded minimal buy order amounts is exactly offset by the total of two discarded minimal sell orders. Therefore, we will no longer discard remaining sell orders, even if they do not meet the minimal trade thresholds.

The above example uses the dollar trade threshold for simplicity, but the principles apply to both dollar and percentage trade thresholds.